| Action Group - Action Financial Management - Estate Planning | |
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Estate Planning Many
financial planners view the accumulation of wealth as the primary
objective of most clients and, indeed, for most clients, building wealth
is a primary goal. But wealth may fail to accomplish many of the
client's most important goals and needs if, at the client's death or
disability, it is lost or poorly used. Thus, Planning for these events
is an important part of the Financial planners art.
In the broadest sense estate planning is the accumulation, conservation, and distribution of wealth in the manner that most efficiently and effectively accomplishes the client's objectives. An alternative definition emphasizing the "planning" aspect is that estate planning is a goal-oriented activity that uses tax minimization tools and techniques to provide the greatest possible financial security for an individual and his beneficiaries. Regardless of which definition is used, it is obvious that estate planning is a key element of overall financial planning. Every estate is planned. Some estates are planned by default: By inaction some people allow their estate plan to be dictated by the federal and state governments. The person who dies without a valid will (that is, dies "intestate") allows the state in which he lived to draw one for him and determine who his heirs will be and how and when they will receive their inheritance. Those heirs must live with what is left by the system of income and death taxation structured by the federal and state governments even though those costs could have been significantly reduced by thoughtful planning.. Few clients would agree to purchase a "one size fits all" wardrobe, yet that is exactly what happens when , by default, they allow the state government to decide who will receive their property, and in what manner their property will be received, and even who will be the guardians of their children's assets or persons. The best estate planning is controlled by the estate owner and the financial services professionals he enlists. Such people use a variety of methods for reducing taxes and the other causes of estate erosion and they employ numerous tax and nontax tools and techniques to accomplish the client's objectives. |
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191 North Avenue, Mount Clemens, MI
48043 |